Introduction
As of 1 July 2025, significant NSW strata law reforms have been implemented, introducing important changes for all strata schemes across the state. These reforms are designed to modernise building management and improve processes for both owners and committees, particularly concerning property renovations and governance.
This guide provides a detailed overview of these changes to strata law, with a focus on the new automatic approval mechanism for a minor renovation. For lot owners and strata committee members, understanding these new rules is crucial for navigating the updated requirements, ensuring compliance, and managing strata property effectively.
Understanding the New Automatic Approval Rule for Minor Renovations
How the 3-Month Automatic Approval Rule Works
As part of the NSW strata law reforms that commenced on 1 July 2025, a new automatic approval process has been introduced for minor renovation requests. Under these changes, if a strata committee does not provide a written refusal with reasons within three months of receiving an owner’s request, the renovation is considered automatically approved. This change aims to prevent long delays and provide certainty for owners.
It is important for owners to understand that a formal application is still required. The automatic approval only takes effect if the committee fails to respond within the specified timeframe.
To ensure compliance and transparency, owners corporations are now also mandated to keep a record of all approved minor renovations for a period of 10 years.
| Category | Example Renovation |
|---|---|
| Kitchen | Installing or replacing kitchen cabinets |
| Flooring | Changing flooring, such as from carpet to timber |
| Climate Control | Installing an air conditioning unit |
| Windows | Adding double glazing to windows |
| Bathroom | Undertaking bathroom renovations that do not affect waterproofing |
However, the exact definition of a minor renovation can vary, so you must always check your specific strata scheme’s by-laws.
The Pre-Requisite: A By-Law Delegating Authority
A critical condition for the automatic approval rule is that it only applies if the strata scheme has a specific by-law in place, which highlights the importance of proper strata by-law drafting. This by-law must expressly delegate the authority to approve minor renovations to the strata committee, as permitted under the Strata Schemes Management Act 2015 (NSW).
If a strata scheme does not have such a by-law, the automatic approval mechanism does not apply. In these cases, approval for minor renovations must be sought through an ordinary resolution at a general meeting of the owners corporation.
Therefore, both owners and committee members should first verify their scheme’s by-laws to understand the correct procedure for handling a minor renovation.
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Key Obligations for Strata Committees & Owners Corporations
The Requirement to Provide Written Reasons for Refusal
Under the NSW strata law reforms that commenced on 1 July 2025, strata committees face new obligations when handling minor renovation requests. If a committee decides to refuse an owner’s application, it must now:
- Provide the reasons for the refusal in writing
- Deliver this written explanation to the owner within three months of receiving the request
This change represents a critical component of the new laws, directly impacting how strata committees work. Failing to provide a written refusal with reasons within the specified timeframe results in a significant consequence: the minor renovation is considered automatically approved. However, this automatic approval only applies if the scheme has a by-law that delegates the authority to approve such renovations to the committee.
The New 10-Year Record-Keeping Mandate
The 2025 strata law changes also introduce a new compliance duty for owners corporations regarding record-keeping. Following the approval of any minor renovation, owners corporations must now:
- Maintain a record of that approval
- Keep these records for a mandatory period of 10 years
This extended record-keeping requirement, a core component of strata law for owners corporations and strata managers, ensures a long-term, accessible history of changes made to lots within the strata property. As a result, both transparency and building management are significantly improved across the strata scheme.
Practical Steps for Lot Owners & Strata Committees
What Lot Owners Should Do When Requesting Renovations
Even with the new automatic approval rule, you must still submit a formal request for your minor renovation. The automatic approval only takes effect if the strata committee fails to respond to your formal application within the specified timeframe.
Before submitting your request, it is crucial to check your specific strata scheme’s by-laws to understand what is classified as a minor renovation. While definitions can vary between schemes, minor renovations typically include works such as:
- Installing or replacing kitchen cabinets
- Changing flooring materials, for example, from carpet to timber
- Installing an air conditioning unit
- Adding double glazing to windows
- Undertaking bathroom renovations that do not affect waterproofing
It is advisable to apply for your renovation well in advance, as the approval process can still take weeks or even months. Submitting a complete and detailed request from the outset can help streamline the process. Additionally, you should follow up with your strata manager or committee if you have not received a response as the three-month deadline approaches.
How Strata Committees & Managers Can Ensure Compliance
To adapt to the 2025 strata law reforms, strata committees and their managers must implement robust procedures to avoid default approvals. A key step is to establish a formal process for tracking all minor renovation requests from the date they are received. This ensures that every application is reviewed and addressed in a timely manner.
The strata committee must provide a written response, including reasons for any refusal, within three months of receiving a request. Failing to meet this deadline will result in the renovation being automatically approved.
Strata managers play a vital role in assisting the committee by:
| Area of Responsibility | Specific Task |
|---|---|
| Deadline Management | Monitoring the three-month response deadlines for all renovation requests. |
| Documentation | Preparing necessary documentation for the committee and owners. |
| Record-Keeping | Ensuring all approved minor renovations are recorded and kept for the new mandatory 10-year period. |
To ensure compliance with the changes from 1 July 2025, the strata committee should meet with their strata manager to review and refine their process for handling renovation requests. Allocating specific tasks and responsibilities will help ensure that all decisions are made and communicated effectively, protecting the owners corporation from unintended approvals.
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Conclusion
The NSW strata law reforms effective from 1 July 2025 introduce a significant automatic approval mechanism for minor renovations, alongside new obligations for strata committees, including providing written reasons for refusal and maintaining records for 10 years. These changes require both lot owners and committee members to understand their updated rights and responsibilities to ensure compliance and streamline building management.
If you need assistance navigating these strata law changes, contact our expert strata lawyers at PBL Law Group for specialised guidance. Our team provides trusted expertise to help ensure your strata property is managed effectively and remains fully compliant with the new legislation.
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